1 us Matt has additional money to invest and considers five hedge funds: A, B, C, D and E. B Below are the correlations between his current portfolio and the funds. Correlation with the current portfolio O Fund B O Fund C O Fund A O Fund D Fund A O Fund E 0.5 Fund B 0.3 Fund C -0.4 If these funds are expected to provide similar returns, which of the funds should Matt invest for diversification benefit? Fund D 0.0 Fund E 0.1